Midland Sees Liability, Fire Losses Hurting Q3; Stops Selling Manufactured Housing Cover

Cincinnati-based Midland Co. said fire and liability insurance losses from manufactured housing parks and dealerships would cut third-quarter earnings. Midland said its American Modern Insurance Group subsidiary, a leader in the manufactured housing insurance market, had recently seen a deterioration in results from this kind of business, which it said was typical in an economic slowdown. The firm said it would stop selling this type of insurance to those clients.

Midland said commercial liability losses from American Modern’s business would cut after-tax net income by 45 to 55 cents per share for the third quarter. A higher rate of fire losses would cut third-quarter earnings by a further 20 cents to 30 cents per share, Midland said.